SolarEdge Technologies (SEDG) shares tumbled 8.80% in pre-market trading on Wednesday following the release of disappointing third-quarter financial results. The solar energy technology company reported a net loss of $50.1 million for Q3, significantly underperforming market expectations.

The substantial loss comes as a shock to investors, who have been closely monitoring the renewable energy sector amidst global efforts to transition to cleaner power sources. This negative earnings report suggests that SolarEdge is facing challenges in maintaining profitability in an increasingly competitive market.

Adding to investor concerns, this financial setback follows SolarEdge's decision earlier this year to lay off approximately 400 employees. The job cuts, announced in January, were part of a broader trend of workforce reductions across various sectors, including energy and technology. This combination of job cuts and poor financial performance may indicate deeper operational issues within the company, potentially impacting its long-term growth prospects in the rapidly evolving solar energy market.